The Hindu : Business : Hutchison convenes EGM on March 9

Online edition of India's National Newspaper
Thursday, Feb 22, 2007
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Business

Business

Hutchison convenes EGM on March 9

Vodafone in a three-year non-compete pact

NEW DELHI: Shareholders of the Hong Kong-based Hutchison Telecom International Ltd. (HTIL) will vote on March 9 on the company's deal with U.K.'s Vodafone for selling controlling stake in Indian mobile venture Hutch-Essar.

In a circular to the shareholders, the HTIL board asked them to vote on the agreement entered by it on February 12 to sell its 67 per cent stake in Hutch-Essar for a consideration of $11.08 billion based on an enterprise value of $18.8 billion.

Hutchison Whampoa, which owns 49.66 per cent in HTIL, will vote in favour of the sale at the EGM, the circular said.

However, sources said the sale would be approved if it received support from stakeholders, representing 50 per cent of the company's shares.

Conditions

Meanwhile, the Li Ka-Shing owned company entered into a three-year non-compete pact with Vodafone as part of which it would not carry out any business that would be competition to Hutch-Essar in the country.

HTIL cannot enter any business in India, establishment of telecom services or related infrastructure facilities or equipment. Under the agreement, HTIL cannot offer jobs to any key employees of Hutch Essar within six months of completion of the sale.

The sale is expected to be completed by either April 2 or the sixth business day after the last conditions have been satisfied for the deal, whichever is later, the circular said. — PTI

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